Ralph Lauren reported fourth-quarter adjusted earnings of $2.80 per share on revenue of $1.98 billion Thursday, beating analyst expectations as affluent shoppers around the world continued buying at full price.
Analyst expectations for adjusted earnings were $2.52 per share, according to MarketScreener. Analysts had forecast revenue of $1.85 billion. In premarket trading Thursday, the stock climbed as much as 11%.
Asia led all regions with revenue up 31% on a reported basis and 28% in constant currency. China was a major driver, helped by strong demand during the Lunar New Year. Revenue in Europe increased 18%, and North America grew 8%.
Comparable store sales across the company's direct-to-consumer network gained 17% for the quarter. The company attributed mid-teens growth in average unit retail prices to product elevation, a favorable mix of geographies and channels, and stronger full-price selling that was accompanied by fewer markdowns. Women's Apparel, Outerwear, and Handbags each grew more than 20% in constant currency during the quarter.
For the full fiscal year, Ralph Lauren crossed $8 billion in revenue for the first time, posting $8.1 billion, up 15% on a reported basis. Full-year adjusted operating margin reached 16.0%, up 200 basis points from the prior year. The company attracted 6.5 million new direct-to-consumer customers during the year.
Ralph Lauren also raised its quarterly dividend by 10% to $1.00 per share, and said it returned more than $700 million to shareholders through dividends and stock repurchases during fiscal 2026.
Looking ahead, Ralph Lauren guided for mid- to high-single-digit constant currency revenue growth and operating margin expansion of 80 to 120 basis points in the first quarter of fiscal 2027. Over the full fiscal year, the company sees constant currency revenue rising in a range centered on 4% to 5%.
"While navigating a highly dynamic global operating environment, we exceeded our financial commitments in Fiscal 2026 with revenues surpassing $8 billion for the first time on healthy quality of sales," President and CEO Patrice Louvet said in a statement. He added that the company's outlook for fiscal 2027 is supported by its "culture of operating discipline" and a strong balance sheet, which held $2.1 billion in cash and short-term investments at quarter's end.